Big movements in the Detroit housing community are coming thanks to a huge infusion of funding announced recently.
A $7.5 million investment from PNC Bank, announced on Wednesday, will help establish and preserve affordable housing through the Detroit Housing for the Future Fund, DHFF, according to the announcement.
Mayor Mike Duggan and PNC Bank held a press conference to share the multifaceted project, which was announced by Duggan last year.
DHFF represents the “largest single private commitment to affordable housing in the city’s history” according to a press release.
The mission of the DHFF is to move private capital to support affordable housing developments in need of gap financing, the release added.
The fund launched seven months ago with three DHFF projects representing $31 million in total development with a DHFF investment of $7.8 million already have been announced, despite COVID-related and seasonal construction shutdowns, per the release.
To date, $48 million of the fund’s goal of $75 million has been raised.
“Development is happening in neighborhoods across the city, but it doesn’t mean much if the Detroiters who stuck with the city during the tough times can’t afford to stay and participate in its comeback,” said Duggan. “PNC Bank’s generous commitment helps ensure that all Detroiters, no matter their income, will have the opportunity to live in any neighborhood they choose.”
The Duggan administration has made affordable housing a key priority as it works to help Detroiters stay in their homes amid increasing rents. The administration set a goal of preserving 10,000 units of existing affordable housing and the development of 2,000 units of new affordable housing through multiple public and private housing initiatives including DHFF. As of now, over 1,000 new affordable housing units have opened or are under construction in the city while nearly 7,000 existing affordable units either have had their affordable rents extended for another 15-30 years or are in the pipeline to have them extended.
“Providing critical capital to support the creation of affordable housing in Detroit reflects PNC’s long-term support of neighborhood revitalization, education, and economic development in the city,” said Ric DeVore, PNC regional president for Detroit and Southeast Michigan.
Developers, like in particular housing developers, often have difficulty finding capital to finance gaps in development or redevelopment costs, according to the announcement. This DHFF helps fill that gap by providing access to capital and financial products specifically designed to address the challenges affordable housing developers face.
The DHFF also helps to support other preservation initiatives in the city. The DHFF primarily finances housing that is affordable to households at or below 60 percent of area median income (AMI) and will give priority to projects with lower incomes to move the funds where the need is greatest. For example, 60% of AMI for an individual is $33,600, and $48,000 for a family of four, according to the release.
“Affordable housing is essential for creating vibrant communities that are home for Detroiters of all walks of life,” said Tahirih Ziegler, Midwest Program Vice President of LISC. “The affordable housing shortage is one of the biggest issues facing our city right now, and the time to address it is now. We are incredibly thankful to the corporate partners who stepped up to help us and answered our call as we work together to make a better, more equitable Detroit.”
Some key funders in the DHFF’s initial capitalization include JPMorgan Chase and The Kresge Foundation.
Developers can go to www.detroithousingforthefuturefund.org to apply or learn more about the fund.
For information, visit www.pnc.com.
The press conference also discussed Pfizer offering an all-city drive-thru and walk-in locations.
Starting May 13, any Detroiter age 12 or older accompanied by a parent or guardian may receive the Pfizer vaccine at any city of Detroit location. The Detroit Health Department will administer the vaccine following FDA and CDC approval of emergency use authorization of the Pfizer vaccine for adolescents age 12-15.
Beforehand, Pfizer was approved for anyone age 16 or older. Recent trials showed that Pfizer was 100% effective in preventing serious illness in adolescents age 12-15. Moderna and Johnson & Johnson vaccines are approved for individuals age 18 and older.
For more information call (313) 230-0505 Monday – Friday from 9 a.m. – 6 p.m. to schedule an appointment.
A full list and map of locations can be found at www.detroitmi.gov.
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